Recent trends in styrene feedstock prices have strengthened, suggesting styrene prices may face more upside than downside pressure in the near term. Fundamentally, concentrated maintenance shutdowns at styrene plants have kept both domestic and international operating rates at relatively low levels since last year, limiting supply pressure. On the downstream demand front, ABS demand has surged beyond expectations, while EPS and PS continue their seasonal decline. Downstream inventories have seen slight increases. While styrene futures prices are rising, the market remains uncertain due to shifting supply-demand dynamics, cost support, and macroeconomic factors. Close monitoring of port inventories, capacity changes, crude oil prices, and policy developments is essential.

Middle East tensions have caused crude oil prices to plummet, dragging down chemical futures broadly. Styrene port inventories have been declining at low levels this week.

Regarding capacity, recent concentrated plant maintenance has kept both domestic and international operating rates at relatively low levels since last year, resulting in limited supply pressure. March-April marks the traditional peak maintenance season; attention should be paid to whether the current high styrene profits may impact maintenance schedules.

The current high profits have also led to the early restart of some plants undergoing maintenance or long-term shutdowns.

Overseas styrene plants have largely resumed operations or postponed maintenance, significantly easing earlier supply-demand tensions. Overseas prices have stabilized, weakening support for domestic styrene prices. Downstream demand: ABS demand has surged beyond expectations, while EPS and PS continue seasonal declines. With the Spring Festival approaching, downstream shutdowns for holidays are expected to further reduce demand. Downstream inventories have seen slight increases.

Styrene prices are currently driven primarily by refinery maintenance and restart news, maintaining an overall upward trend. However, seasonal inventory buildup and easing overseas supply constraints are weakening price support. After a period of gains, styrene valuations are now elevated, while crude oil prices have peaked and are trending downward.

Styrene faces significant upward pressure in the short term. Key near-term factors to monitor include geopolitical developments, the pace of refinery restarts, and downstream resumption of operations.

As an integrated internet platform providing benchmark prices, On February 25, SunSirs' benchmark price for styrene was 7,530.00 RMB/ton, a decrease of 4.37% compared to the beginning of the month (7,874.00 RMB/ton).

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